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Title:The economic impact of AIDS treatment: labor supply in Western Kenya PDF Logo
Authors:Thirumurthy, Harsha
Graff Zivin, Joshua
Goldstein, Markus
Issue Date:2006
Series/Report no.:Center discussion paper // Economic Growth Center 947
Abstract:Using longitudinal survey data from western Kenya, this paper estimates the economic impacts of antiretroviral treatment. The responses in two important outcomes are studied: (1) labor supply of adult AIDS patients receiving treatment; and (2) labor supply of patients’ household members. We find that within six months after treatment initiation, there is a 20 percent increase in patients’ likelihood of participating in the labor force and a 35 percent increase in weekly hours worked. Since patient health would continue to decline without treatment, these labor supply responses are underestimates of the impact of treatment on the treated. The upper bound of the treatment impact, based on plausible assumptions about the counterfactual, is considerably larger. The responses in household members’ labor supply are heterogeneous, with young boys and women working significantly less after initiation of treatment. The effects on child labor are important since they suggest potential schooling impacts from treatment.
Subjects:HIV/AIDS
antiretroviral treatment
labor supply
child labor
JEL:I1
I3
O1
J2
Document Type:Working Paper
Appears in Collections:Center Discussion Papers, Economic Growth Center (EGC), Yale University

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